Alger, an investment management firm, published its “Alger Weatherbie Specialized Growth Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. During the quarter, the largest portfolio sector weightings were Information Technology and Health Care. The largest sector overweight was Financials. Class A shares of the Alger Weatherbie Specialized Growth Fund underperformed the Russell 2500 Growth Index during the first quarter of 2021. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Alger Weatherbie Specialized Growth Fund, in their Q1 2021 investor letter, mentioned Paylocity Holding Corporation (NASDAQ: PCTY) and shared their insights on the company. Paylocity Holding Corporation is a New York-based payroll and human capital management (HCM), software solutions provider that currently has a $10.3 billion market capitalization. Since the beginning of the year, PCTY delivered a -7.31% return, extending its 12-month gains to 123.61%. As of April 19, 2021, the stock closed at $190.85 per share.
Here is what Alger Weatherbie Specialized Growth Fund has to say about Paylocity Holding Corporation in their Q1 2021 investor letter:
“Paylocity Holdings Inc. was among the top detractors from performance. Paylocity is a leading software-as-a-service company that provides cloud-based payroll and human capital management in underserved small to mid-size markets. The majority of new sales activity is with employers that have 50 to 500 employees. Shares of Paylocity underperformed during the quarter and guidance was lower than expected for the company’s fiscal 2021 third quarter as Internal Revenue Service form W-2 volumes for tax filings were lower as a result of lower employment levels due to Covid-19. We believe this volume has potential to return to normal as the pandemic subsides.”
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Our calculations show that Paylocity Holding Corporation (NASDAQ: PCTY) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Paylocity Holding Corporation was in 26 hedge fund portfolios, compared to 27 funds in the third quarter. PCTY delivered a -1.88% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
